The information came from latest Q1 Hospitality Members Survey, which is conducted by UKHospitality, the British Beer & Pub Association, British Institute of Innkeeping and Hospitality Ulster.
Furthermore, while the UKHospitality Quarterly Tracker in association with CGA also showed revenue had increased by 4.2% against 2019, it was down 13% in real terms when taking inflation into account.
UKHospitality chief executive Kate Nicholls said: “These figures show the challenging position the sector is in. The demand from the public is quite clearly there with revenue exceeding pre-Covid levels but there is no way venues can take advantage of this demand as they drown amid price rise after price rise."
She added: “Without action, we can see just how stark the year ahead could be with a third of businesses at risk of failure.
“Venues are simply unable to pass prices onto the consumer at the same rate they are experiencing their own costs rise.”
She urged the Government to address the root cause of inflation in the upcoming Budget and called for intervention in the energy market alongside a number of other asks.
“If the Chancellor wants to stem the bleeding in hospitality and stop those price rises, which unfortunately contribute to inflation, he can take action in the Budget,” Nicholls said.
“We know one of the Government’s key priorities is cutting inflation and growing the economy, which we support. Hospitality is a prime sector to achieve this, with a track record of delivering rapid growth.
“Intervening in the energy market to stop unscrupulous behaviour by energy suppliers, reforming the Apprenticeship Levy and tackling disproportionate business rates would signal his commitment to the everyday economy and its ability to lift the nation out of its economic slump.
“People up and down the country want to support their local pubs, restaurants, coffee shops and hotels, to name just a few.
“If the Chancellor allows those venues to take advantage of that support, we can turn record sales into real terms growth.”
A previous joint survey from the trade bodies earlier this month (February) revealed a third of businesses were cutting trading days as a result of rocketing energy bills.